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Process

The four steps of customer development

Search first (discovery and validation), then execution (creation and company building)

Process showing the four steps of customer development: customer discovery, customer validation, customer creation and company building.
Most of the learning, and most of the failure prevention, happens in the first two steps. Source: Steve Blank, The Four Steps to the Epiphany

Steve Blank's customer development model in four steps. Customer discovery and customer validation make up the search phase, where a startup tests who the customer is, what problem they have and whether a repeatable business model exists. Customer creation and company building are the execution phase. It is for founders deciding what to prove before they scale. Koji runs AI-moderated interviews in parallel, which helps the discovery step keep pace with the product work.

Where this appears

What's in this process

  1. Customer discovery: Turn hypotheses into facts. Talk to prospects to test whether the problem is real, urgent and widespread.
  2. Customer validation: Prove the problem and solution can carry a repeatable, scalable business model. If not, pivot back to discovery.
  3. Customer creation: With the model validated, build end-user demand and the funnel that feeds your repeatable process.
  4. Company building: Move from a team that searches for a model to one structured to execute it at scale.

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<p>Source: <a href="https://www.koji.so/visuals/steve-blank-four-steps-of-customer-development">The four steps of customer development</a>, Koji</p>